Buyers of Solana (SOL)-Based Meme Coins Should Beware, Here’s Why

Solana-based meme coins have grown in popularity in recent months as more users and developers explore the potential of the Solana ecosystem.

Meme coins are cryptocurrencies inspired by internet memes, jokes or pop culture trends. As the Solana ecosystem saw a new wave of interest, meme coins based on the network experienced enormous price increases.

Bonk (BONK) was the biggest gainer among Solana ecosystem coins in the last year. The Solana-based meme coin gained more than 13,000% in 2023 and secured listings on major cryptocurrency exchanges.

Dogwifhat (WIF), one of Solana’s most popular meme coins, netted millions of dollars for early investors in December. The meme coin has become one of the biggest blockbusters in the Solana ecosystem recently, alongside Bonk (BONK) and other tokens.

Investors should pay attention

Coins associated with memes, especially those of the Shiba Inu dog breed, have a propensity to skyrocket in value in a relatively short amount of time, so investors are frequently on the lookout for the next big thing.

However, some unscrupulous individuals have leveraged this fact, creating several meme coins that spiked to incredible highs before beginning to collapse. These meme coins are “rugpulled” by their unknown creators, who withdraw liquidity and leave investors holding the bag.

PeckShieldAlert draws attention to one such token, SolDragon (DRAGON), which dropped 100% after its anonymous developer withdrew the liquidity on the platform, cashing out 1006.36 BNB worth $304,600.

Worthy of note, according to PeckShieldAlert, was the fact that the rug pull token shared the same name as the legitimate one.

PeckShieldAlert also warns about five other rug-pull meme tokens that bear the same name as the legitimate ones. This recent development mandates that investors pay close attention as bad actors continue to up their game in a bid to defraud unsuspecting investors.